Newly appointed businessman Narek Nalbandyan’s company, affiliated with “PointInvest” LLC, has received a substantial subsidy of 17 million drams from the European Union’s delegation in Armenia. The subsidy was granted for the services provided during the annual Eastern Partnership Summit, which took place on August 24th and 25th at the former “Golden Palace” hotel in Tsaghkadzor. The agreement for the subsidy was signed with “Project Inter-Invest,” a subsidiary of Nalbandyan’s company.

As part of the subsidy agreement, the summit organizers leased the hotel’s presidential suite, reception area, and three rooms, including one for high-level meetings. However, it has come to light that the hotel was selected without a competition. When questioned about the implementation of this government subsidy, an IRIS registry document issued by the Deputy Head of the State Budget Office revealed that the expenses of state officials, deputy heads, acting deputy heads, and external service officials were reimbursed based on evidenced expenses.

The choice of venue for the summit and the selection of Nalbandyan’s hotel as the external provider have raised concerns and sparked questions. The hotel, which Nalbandyan purchased under special conditions from the government, is now facing difficulties in paying the amount on time. Despite this, the police chief of ANCA Serzh Sargsyan stated that the hotel is located in a safe area.

Armenia has been hosting various international summits in recent years, including several organized by the Eurasian Economic Union. Yerevan has been a preferred location, with the Dvin hotel complex hosting the summit in October 2022 and the Karen Demirchyan Sports and Concert Complex hosting it in November 2021. In 2020, a hotel complex was also selected as the venue for the summit.